Did Gov. Malloy Break Tax Promise?

EDITORIAL

Something to be said for being explicit

December 11, 2012

Does Gov. Dannel P. Malloy's proposal to squeeze $22 million out of businesses to help eliminate a budget deficit violate his oft-stated promise not to seek further tax increases to balance the budget?

"Absolutely" he broke his word, say Republicans. As state Sen. Andrew Roraback explains it, "the substance of securing revenue for government is generally referred to as taxation."

And since Mr. Malloy's proposal to scale back credits used to reduce corporate tax liability and to close a loophole in a new tax on electricity generation would raise $22 million for the state, it is, ipso facto, a tax increase.

No siree! says the Democratic governor.

He called what he wants state government to do "limiting the percentage of tax avoidance" in the one case and, in the other, closing an unintended loophole in the levy on power plants. But not taxation.

In this semantical battle, the Republicans win by more than a hair.

But we don't think Mr. Malloy was promising in bad faith. The governor was not pledging to never look for credits or loopholes if the budget were in a pinch.

He was, rather, promising not to lead the charge for another increase that would hit all taxpayers much as did the $1.5 billion record tax hike that helped eliminate the $3.5 billion deficit facing him when he became governor last year.

That tax package included boosts in the state income and sales tax rates. It was monumental. He didn't want to dip into that well again.

It would have been better, however, had Mr. Malloy been specific about his tax pledge — to avoid misunderstandings, if nothing else.

We hope Mr. Malloy doesn't raise taxes again. But who knows what combination of fiscal disasters might occur to make it an unavoidable option?